Silmäasema Oyj Financial Statements Release 1 January –31 December 2019: 
Excellent fourth quarter for Silmäasema – full-year adjusted EBITDA increased clearly year-on-year  

Silmäasema Oyj                  
Stock Exchange Release - Financial Statements Release                        
31 March 2020 at 9:00 a.m. EEST 

This is a summary Silmäasema’s Financial Statements Release 2019. The complete report
is attached to this release and also available at https://company.silmaasema.fi/en/. Silmäasema does not arrange earnings call. 

October–December 2019 in brief

  • Net sales increased by 7.7% compared with October–December 2018, amounting to EUR 34.8 million (32.4). The like-for-like net sales grew by 10.0%.
  • The adjusted EBITDA* increased by 66.9% and was EUR 5.9 million (3.5), or 16.9% of net sales (10.9%). Without the impact of IFRS 16, the adjusted EBITDA would have been 11.9% of net sales (10.9%).
  • The adjusted operating result* increased by 29.9% to EUR 2.6 million (2.0).


January–December 2019 in brief

  • Net sales increased by 6.7% compared with January–December 2018, amounting to EUR 131.1 million (122.9). The like-for-like net sales grew by 6.8%.
  • The adjusted EBITDA* increased by 82.7% and was EUR 21.5 million (11.8), or 16.4% of net sales (9.6%). Without the impact of IFRS 16, the adjusted EBITDA would have been 10.8% (9.6%) of net sales.
  • The adjusted operating result* increased by 42.1% to EUR 8.3 million (5.8).
  • Cash flows from operating activities* developed strongly and amounted to EUR 18.5 million (13.1).
  • Net debt* was EUR 46.1 million (28.0) at the end of the period.
  • The net debt to adjusted EBITDA ratio* was 2.1 (2.4) on 31 December 2019.
  • Basic earnings per share improved to EUR 0.28 (0.23).

The figures for 2018 are from the audited financial statements. The quarterly figures are unaudited. The figures in parentheses refer to the comparable period in 2018, and ‘comparison period’ refers to the corresponding period in the previous year, unless otherwise mentioned.

Proposed dividend

The Board of Directors proposes to the Annual General Meeting that no dividend be paid for the 2019 financial year.

Outlook for 2020

Silmäasema is not issuing an outlook for 2020, as it is impossible to assess the business impact of the coronavirus in sufficient detail at this stage.

* IFRS 16 affects the comparability of the reported figures

On 1 January 2019, Silmäasema adopted the IFRS 16 Leases standard, which entered into force at the beginning of the year. The figures reported for October–December and January–December 2019 are not comparable with the previous year’s figures, as they include items based on the adoption of the IFRS 16 standard. The impact of the adoption of the IFRS 16 standard on the key figures is presented in the ‘Impact of IFRS 16 on the key figures’ table. The data in parentheses for the comparison period have not been adjusted for the IFRS 16 standard. More information about the adoption of the standard is provided on pages 33–34 of Note 5.3 to the interim report.


Key figures

EUR thousand, unless otherwise stated10–12/
2019		10–12/
2018		Change, %1–12/
2019		1–12/
2018		Change, %
Net sales34,82832,3537.7%131,065122,8736.7%
Comparable net sales growth, %10.0%0.0% 6.8%-1.6% 
EBITDA*5,3563,13171.1%20,26811,44377.1%
Adjusted EBITDA*,**5,9013,53566.9%21,49011,76582.7%
- Adjusted EBITDA*, %16.9%10.9% 16.4%9.6% 
Operating result1,9781,57725.4%6,7835,49223.5%
Adjusted operating result*,**2,5731,98129.9%8,3035,84442.1%
- Adjusted operating result*, %7.4%6.1% 6.3%4.8% 
Basic earnings per share, EUR*0.110.08 0.280.23 
Net debt / adjusted EBITDA*   2.12.4 
Investments – operational   2,7396,716-59.2%
Investments – acquisitions   1,5881,775-10.5%
Investments – total   4,3278,491-49.0%
Number of locations, Silmäasema chain   166181-8.3%


* The key figure is not comparable due to the adoption of the IFRS 16 standard at the beginning of 2019.
** Silmäasema presents both its adjusted EBITDA and adjusted operating result, which have been adjusted for significant extraordinary items. It is the company’s view that the adjusted EBITDA best illustrates the profitability development of its business operations.


Impact of IFRS 16 on the key figures

EUR thousand, unless otherwise statedReported
10–12/
2019		Without
IFRS 16
10–12/
2019		IFRS 16
change		Reported
10–12/
2018		Reported
1–12/
2019		Without
IFRS 16
1–12/
2019		IFRS 16
change		Reported
1–12/
2018
EBITDA5,3563,4901,8663,13120,26812,6077,66211,443
Adjusted EBITDA5,9014,1341,7673,53521,49014,1247,36611,765
Adjusted EBITDA, %16.9%11.9%5.1% points10.9%16.4%10.8%5.6% points9.6%
Operating result1,9781,915631,5776,7836,5022805,492
Adjusted operating result2,5732,57301,9818,3038,0862175,844
Profit before taxes1,4441,508-641,1994,8835,244-3614,123
Profit (loss) for the period1,5791,630-511,1903,9594,247-2893,254
Basic earnings per share, EUR0.110.110.000.080.280.30-0.020.23
Cash flow from operating activities     18,54011,6786,86213,092
Net debt    46,05421,01325,04027,957
Net debt / adjusted EBITDA (leverage)    2.11.50.72.4
Gearing, %    103.1%46.8%56.4% points66.6%
Equity ratio    38.4%49.0%-10.6% points42.8%
Return on capital employed, % (ROCE)    6.5%8.4%-1.9% points6.9%
Return on equity, % (ROE)    9.1%9.8%-0.6% points8.1%


CEO Teppo Lindén:

“The fourth quarter and full-year result for 2019 is great. Fourth quarter was very good in terms of net sales and profitability as both Optical Retail and Eye Clinics performed better and better towards the end of the year. At the same time, I must say year 2020 does not look as good. Coronavirus epidemic has put Silmäasema, as well as the whole society, to face new kinds of challenges, and the market environment has clearly changed. However, I will do my best to ensure the company will conquer all challenges with the least possible damage.

During these emergency conditions, we are planning our operations and personnel levels very closely. Our actions are guided by the thinking that once the restrictions regarding social contacts at some point will vanish, we will be in good position to serve customers even better and more versatile than before. The epidemic has already now boosted the creation of new kind of services and we are serving our customers more and more via telephone.    

In 2019, a major change took place in Silmäasema’s ownership structure, and Silmäasema is becoming a wholly owned subsidiary of Coronaria through a redemption procedure. Coronaria is a Finnish company with a wide range of healthcare operations in the treatment of eye conditions in the public sector, for example, in addition to a holding in Medilaser. Coronaria provides a broad foundation for operational development at Silmäasema with a stronger focus on customers, as well as helping Silmäasema establish itself as the leading eye healthcare expert. 

I want to thank our employees and partners for last year, and our customers for their trust. We will all face difficult times in the coming months. Despite all that, our goal for Silmäasema remains to be known among customers as the leading eye healthcare expert that offers a full range of eye healthcare services with effortless access. We want to be the first choice for customers, partners and employees.”

Board of Directors’ proposal for the distribution of profits

On 31 December 2019, the parent company’s distributable funds totalled EUR 43,815,606.81, including the profit for the period, which is EUR 2,659,822.79.
 
The Board will propose to the Annual General Meeting on 30 June 2020 that no dividend be paid for the 2019 financial year (1 January – 31 December 2019). The Board will propose that all distributable funds be left in equity.

No significant changes have taken place in the company’s financial standing after the end of the financial year. The company’s liquidity is good. Due to its current ownership structure, the company sees no need for distributing a dividend.

Annual General Meeting

Silmäasema’s Annual General Meeting will be held on 30 June 2020. The Board of Directors will convene the meeting by means of a separate stock exchange release.


SILMÄASEMA OYJ
Board of Directors

For further information, please contact:
Teppo Lindén, CEO, tel. +358 400 684 119, teppo.linden(a)silmaasema.fi
Sari Nordblad, CFO, tel. +358 50 552 7247, sari.nordblad(a)silmaasema.fi
Niina Streng, Head of Communications and Investor Relations, tel. +358 50 322 5195, niina.streng(a)silmaasema.fi

Silmäasema is a Finnish company, which offers all products and services for optical retail and eye healthcare nationwide. Silmäasema is the largest private eye clinic provider offering eye surgeries and the second largest optical retail chain in Finland. The Silmäasema chain has over 150 stores and 13 eye clinics in Finland as well as eight stores in Estonia. The Silmäasema chain employs over 1,000 eye healthcare professionals. The Silmäasema Group’s net sales were EUR 131.1 million in 2019 and adjusted EBITDA was EUR 21.5 million.

Attachment

  • EN - Silmäasema Oyj - Financial Statements Release 2019

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